Breaking News: Judge Blocks New Overtime Ruling

If you were waiting to see how the new overtime and worker classification rules were going to impact your to-do lists, the wait continues. In a 20-page ruling, U.S. District Judge Amos Mazzant determined that the new regulations were unlawful and has blocked their implementation. Mazzant was appointed to the U.S. District Court for the Eastern District of Texas by President Obama.

The ruling was in response to a case brought by 21 states and several business groups, including the U.S. Chamber of Commerce and the National Retail Federation (NRF). The new rules would have extended overtime pay to millions of Americans who are currently exempt, in most cases because they are considered management.

In blocking implementation of the rule, Judge Mazzant said that the Labor Department cannot use only salary levels to determine if workers are eligible for overtime. Mazzant said the rule “creates essentially a de facto salary-only test.”

The Labor Department is expected to appeal the ruling, but President-Elect Trump, when he takes office, could direct the Department to drop any such appeal.

Follow Insightful Accountant for more news on the ruling as it unfolds.